Letshego Subsidiary, Afb Ghana, expand bond funding by GHC200m

Afb Ghana has increased its bond issue by two thirds, to total GHS300 million in order to support Letshego Subsidiary’s ongoing expansion strategy.

Afb’s bonds have secured a solid rating for the last year due to its solid track record and positive business potential for the medium term.

Global Credit Rating attributes the positive rating track record to Afb Ghana’s “sustainable multi-lending product strategy executed by leveraging on the expertise of its parent Letshego Holdings Limited (“Letshego”), increased funding diversification, strong capitalisation and enhanced earnings profile.”

The rating agency’s interest lies in reviewing Afb Ghana’s recently launched mobile Qwikloan solution, with other new offerings and digital ventures, such as Afb Ghana’s Education Eco-System solution being a key consideration for the rating horizon.

Arnold Parker, Afb Ghana’s Chief Executive Officer commented, “Our bond programme remains a valuable element of our funding strategy in Ghana. Our increased access to funding not only secures more capital to support expansion strategies but also achieves cost efficiencies in securing local currency funding as well as extended terms – all elements which contribute to diversifying our risk.

Afb Ghana has recently raised an additional GHS95 million in new bond issues from predominantly local investors. The issue of the new 5, 6 and 7-year bonds was again oversubscribed, and again attributable to the strong track record of Afb and the investment grade rating of the listed bonds.

Parker added, “Our bond credit rating of BBB+(GH) sits three notches above investment grade – a noteworthy achievement for any expanding business. Letshego and Afb Ghana remain committed to focusing our growth strategy in Ghana to leverage local business potential, and secure sustainable growth for the long term.”